ArcelorMittal raises U.S. rail prices--twice

By Tom Stundza -- Purchasing, 4/9/2008 12:48:00 PM

At first, it was $100/ton; then, it became $160. That’s the adjusted sales price increase that ArcelorMittal Long Carbon North America is proposing for steel standard rail shipped to North American railroads and distributors. The Contrecoeur, Quebec-based firm blames rising scrap prices for its second price increase in less than a week.

"The increase in scrap prices was even greater than our forecast estimates (so) we are forced to revise our pricing to more accurately reflect current conditions," the company says in a statement. "While we hope that there will be some stability in the market in the coming months, to be frank, the situation defies prediction.”

Steel Dynamics’ rail division in Columbia City, Ind., and Rocky Mountain Steel of Pueblo, Colo., have yet to announce any rail price increases.